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An analytical model for the formation of economic clusters

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  • Chincarini, Ludwig
  • Asherie, Neer

Abstract

A simple spatial economy derived from microeconomic foundations is presented to gain insight into the formation of economic clusters. In this model, the formation of economic clusters is a consequence of the competition between economic forces that are consistent with atomistic agents maximizing their utility. An analytic approach is used to obtain the evolution of economic clusters. With this approach, the number of clusters which will grow can be predicted. These results are derived in the traditional one-dimensional geometry and extended to the more realistic two-dimensional landscape.

Suggested Citation

  • Chincarini, Ludwig & Asherie, Neer, 2008. "An analytical model for the formation of economic clusters," Regional Science and Urban Economics, Elsevier, vol. 38(3), pages 252-270, May.
  • Handle: RePEc:eee:regeco:v:38:y:2008:i:3:p:252-270
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    Cited by:

    1. Brock, William A. & Xepapadeas, Anastasios & Yannacopoulos, Athanasios N., 2014. "Spatial externalities and agglomeration in a competitive industry," Journal of Economic Dynamics and Control, Elsevier, vol. 42(C), pages 143-174.
    2. Brock, William A. & Xepapadeas, Anastasios & Yannacopoulos, Athanasios N., 2014. "Optimal agglomerations in dynamic economics," Journal of Mathematical Economics, Elsevier, vol. 53(C), pages 1-15.
    3. William Brock & Anastasios Xepapadeas & Athanasios Yannacopoulos, "undated". "Adjustment Costs and Long Run Spatial Agglomerations," DEOS Working Papers 1327, Athens University of Economics and Business.
    4. Brock, William & Xepapadeas, Anastasios, 2008. "General Pattern Formation in Recursive Dynamical Systems Models in Economics," MPRA Paper 12305, University Library of Munich, Germany.
    5. Galina Boush & Okxana Kulikova & Ivan Shelkov, 2016. "Agent Modelling of Cluster Formation Processes in Regional Economic Systems (p. 64-77)," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(1), pages 64-77.

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